Agenda - 08-19-2008- 5c - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: August 19, 2008 Action Agenda Item No. ~~ SUBJECT: Public Hearing and Final Resolution for Financing of the Animal Services Facility DEPARTMENT: Finance PUBLIC HEARING: (Y/N) Yes ATTACHMENT(S): Resolution INFORMATION CONTACT: Gary Humphreys, 245-2453 Robert Jessup, 919-755-1800 PURPOSE: To adopt a resolution required for final approval of the financing for the construction of the Animal Shelter. BACKGROUND: On February 19, 2008, the Board approved a contract for site preparation for the Animal Services Facility and a reimbursement resolution which authorized the issuance of a maximum of $8.0 million of non-general obligation debt (alternative financing) to pay for the costs of this project. At its June 3, 2008 meeting, the Board approved the contract for construction of the Animal Services Facility. On June 24, 2008, the Board authorized and directed the Financial Officer to take all appropriate steps toward the completion of up to $9.3 million in financing, $1.3 million for Solid Waste equipment and $8 million for the construction of the Animal Shelter Facility. Financing proposals were requested from seven institutions and four institutions responded with proposals. The County's request provided that the financings for the Solid Waste equipment financing and the Animal Shelter Facility could be awarded to different institutions. Based on the proposals received, the result with the lowest cost for the County was to award the financings separately. The Animal Shelter Facility is financing is for 15 years and therefore it does require Local Government Commission approval. The lowest cost and most advantageous financing proposal was from Bank of America at a rate of 3.68% for a fifteen year period. Debt service payments will be paid semi-annually beginning in September 2009; therefore there will be no debt service payments until fiscal year 2009-10. The attached resolution was prepared by bond counsel in accordance with statutory requirements and makes the determination to proceed with the financing, authorizes staff to execute necessary documents related to the financing, and authorizes the Finance Officer to complete the closing.